Please help me Prepare the journal entry to recognize interest on 12/31/26 for Marin Company. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. List debit entry before credit entry.)Date Account Titles and Explanation12/31/26 Discount on Notes ReceivableInterest RevenueeTextbook and MediaList of AccountsDebitCreditAssistance Used On January 1, 2025, Marin Company loans $378,765 to Cullumber Corporation in exchange for a $450,000 zero-interest-bearingnote payable in 2 years. The market rate of interest for a transaction of this nature for Cullumber is 9%. The present value of 1,2 yearsout at 9% is 0.8417.Marin Company has a calendar year-end and it uses the effective-interest method.

Zero interest-bearing notes are issued at a discount. Zero interest-bearing note does not pay…

On January 1, 2025, Marin Company loans $378,765 to Cullumber Corporation in exchange for a $450,000 zero-interest-bearing note payable in 2 years. The market rate of interest for a transaction of this nature for Cullumber is 9%. The present value of 1, 2 years out at 9% is 0.8417. Marin Company has a calendar year-end and it uses the effective-interest method.

On January 1, 2025, Marin Company loans $378,765 to Cullumber Corporation in exchange for a $450,000 zero-interest-bearing note payable in 2 years. The market rate of interest for a transaction of this nature for Cullumber is 9%. The present value of 1, 2 years out at 9% is 0.8417. Marin Company has a calendar year-end and it uses the effective-interest method.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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